Asbury Automotive Group Inc (ABG)
Financial leverage ratio
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
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Total assets | US$ in thousands | 10,337,000 | 10,173,600 | 10,306,000 | 10,131,500 | 10,159,400 | 8,255,000 | 8,165,900 | 8,182,800 | 8,021,400 | 7,816,300 | 7,638,800 | 7,860,100 | 8,002,600 | 3,571,400 | 3,524,900 | 3,582,300 | 3,676,300 | 3,530,600 | 2,934,400 | 3,069,200 |
Total stockholders’ equity | US$ in thousands | 3,502,000 | 3,362,400 | 3,330,700 | 3,346,900 | 3,244,100 | 3,248,500 | 3,068,500 | 3,049,200 | 2,903,300 | 2,642,800 | 2,410,400 | 2,182,500 | 2,115,500 | 1,301,300 | 1,148,300 | 998,000 | 905,500 | 811,900 | 713,100 | 660,900 |
Financial leverage ratio | 2.95 | 3.03 | 3.09 | 3.03 | 3.13 | 2.54 | 2.66 | 2.68 | 2.76 | 2.96 | 3.17 | 3.60 | 3.78 | 2.74 | 3.07 | 3.59 | 4.06 | 4.35 | 4.11 | 4.64 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,337,000K ÷ $3,502,000K
= 2.95
The financial leverage ratio of Asbury Automotive Group Inc has been showing a decreasing trend from March 31, 2020, where it was at 4.64, to December 31, 2024, where it decreased to 2.95. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests a stronger financial position and lower risk of financial distress, as the company is less reliant on debt financing. However, it is important to note that a very low financial leverage ratio may also imply missed opportunities for leveraging debt to potentially boost returns. Overall, the decreasing trend in Asbury Automotive Group Inc's financial leverage ratio signals a more conservative approach to capital structure management.
Peer comparison
Dec 31, 2024